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When at the end of an accounting period cash has not been paid with respect to an expense that has been incurred the business should then record?
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How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
With respect to prepaid income from services is the treatment of prepaid income the same for tax and financial accounting?
No - for financial accounting it is treated as deffered income (included in income when earned) and for tax perposes it is income in the year received.
What is the accounting treatment for employee stock ownership plan?
a. In respect of options granted during any accounting period, the accounting value of the options shall be treated as another form of employee compensation in the financial statements of the company. b. The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the fair value of the option. For this purpose: - 1. Fair value means the option discount, or if the company so chooses, the value of the option using the Black scholes formula or other similar valuation method. 2. Option discount means the excess of the market price of the share 3. At the date of grant of the option under ESOS over the exercise price of the option (including up-front payment, if any c. Where the accounting value is accounted for as employee compensation in accordance with 'b' the amount shall be amortized on a straight - line basis over the vesting period. d. When an un -invested option lapses by virtue of the employee not conforming to the vesting conditions after the accounting value of the options has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense equal to the amortized portion of the accounting value of the lapsed options and a credit to deferred employee compensation expense equal to the un-amortized portion. When a vested option lapses on expiry of the lapsed period, after the fair value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense. Sanjay K Jha (9911135009)
What role does management accounting play in decision making?
provide specific examples of these questions with respect to the use of a coutry's scarce resources
Why do people use accounting?
Asking that question of an accountant is like asking a farmer why we need rain. We need accounting because it's the only way for business to grow and flourish. Accounting is the backbone of the business financial world. After all, accounting was created in response to the development of trade and commerce during the medieval times.Italy is our first recorded source for accounting entries, and the first published accounting work in 1494 was by a Venetian monk. So you see accounting as an organized method for record-keeping has been around almost as long as the trade and business industries. Another interesting fact is the knowledge and principles upon which the first accounting practices were established, have changed very little in the many hundreds of years that accounting has been in use. The concepts of assets, liabilities, and income and the need to reconcile these areas is still the basis for all accounting functions today.The process for recording those transactions, and the many reports generated by the compilation of that information has evolved over the last two hundred years. Thanks to the creation of computers, many of the bookkeeping functions that are vital to accounting, but somewhat repetitive are performed by data entry clerks, and the reports generated come from the IS Department. The end result is still the same: accounting gives us the financial snapshot we need in order to make solid business decisions about the current status or projected future health of our businesses.There are two basic categories of accounting: financial accounting and managerial accounting. Financial accounting is comprised of information that companies make available to the general public: stockholders, creditors, customers, suppliers, and regulatory commissions. Managerial accounting deals with information that is not made public. Information such as salary costs, Cost of goods produced, profit targets, and material control information. The knowledge supplied by managerial accounting is for the use of department heads, division managers, and supervisors to help them make better decisions about the day-to-day operations of the business.Now, what about the "accountability" part of the accounting process? Why do we need that and how do we enforce it? Businesses need to be held accountable for the methods they use to run a business because the potential for greed, theft, and dishonesty exist in every business. You have only to read the current events section of the newspaper to realize how rampant corporate abuse is in business today. We have Enron, HEALTHSOUTH, and Martha Stewart examples to show us just how extensive the problem has become. There are specialized areas of accounting, that when correctly enforced, eliminate the possibility for fraud. Auditing and income taxation, when used correctly, force business to account for all business income, transactions, and transfers, and then to pay their fair share of the tax burden. The catch here is that the principles must be correctly enforced.Accounting is the conscious of the business world. When handled with care and with respect, it performs as expected. When abuse occurs, and the system is circumvented or overridden because of dishonesty and greed, it doesn't work correctly. Accounting is much like all other systems in place, they are only as good as the people using them
What method do empolyers usually use to begin their search for a new employee?
They ask friends and people in the business world whom they know and respect.
How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
Why should an organization be concerned with supplier relationships?
The relationship between a supplier and organization can be a complex one.Each party wants to maximize its time, resources, and cash investment; these may be competing priorities that can strain the relationship. For such a partnership to succeed, it is paramount there exists a mutual business understanding underscored with respect and a sincere wish for each party to prosper. Creating this balance does not mean driving for the lowest possible price with no regard for the true expense incurred, but rather recognizing that the success of one partner helps the success of the other.
What is the Relationship between accounting department and other departments?
All departments and their activities results in one thing: profit (or lack thereof). Everything any department does has an affect on the bottom line. Every single thing a person in each department does affects it (no matter how minor). In that respect, accounting's purpose is to track all of that, translate it into revenue or expense, and report out to stakeholders and managers. These reports then get consolidated and determine the company's profit/loss and its share value.
What did Alexander Hamilton believed that the US needed?
A stronger central government with the power to actively support merchants. He also wanted the US to respect the debts it had incurred.
Why is it important to dress suitable for business?
Because its a part of one's character. If you dressed up suitable for that sort of business they will definitely respect you as being part of that business. It's not just about fashion or whatever you call that It's being you and it's showing respect to the business that you're in to.
What is the difference between branch and department accounting?
A branch is a unit and a department is the sub unit in an organization. when we talk in terms of a branch we mean the accounting methodologies in respect of the unit consisting of all the departments working under it.
With respect to prepaid income from services is the treatment of prepaid income the same for tax and financial accounting?
No - for financial accounting it is treated as deffered income (included in income when earned) and for tax perposes it is income in the year received.
What is the accounting treatment for employee stock ownership plan?
a. In respect of options granted during any accounting period, the accounting value of the options shall be treated as another form of employee compensation in the financial statements of the company. b. The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the fair value of the option. For this purpose: - 1. Fair value means the option discount, or if the company so chooses, the value of the option using the Black scholes formula or other similar valuation method. 2. Option discount means the excess of the market price of the share 3. At the date of grant of the option under ESOS over the exercise price of the option (including up-front payment, if any c. Where the accounting value is accounted for as employee compensation in accordance with 'b' the amount shall be amortized on a straight - line basis over the vesting period. d. When an un -invested option lapses by virtue of the employee not conforming to the vesting conditions after the accounting value of the options has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense equal to the amortized portion of the accounting value of the lapsed options and a credit to deferred employee compensation expense equal to the un-amortized portion. When a vested option lapses on expiry of the lapsed period, after the fair value of the option has already been accounted for as employee compensation, this accounting treatment shall be reversed by a credit to employee compensation expense. Sanjay K Jha (9911135009)
What role does management accounting play in decision making?
provide specific examples of these questions with respect to the use of a coutry's scarce resources
How could establish good relationships with your suppliers?
Good business relationships are usually built on respect and following through with the business codes. Everyone enjoys being respected and responds positively to respect that is given. Kindness and respect always have positive outcomes in any realtionship.
Which quality should business e-mails show?
respect-apex
